Australia-based
Xstrata Coal has announced that it is undertaking a planned restructuring to respond to industry-wide pressures including low coal prices, high input costs and a strong Australian dollar against the US dollar.
The company will reduce its employee numbers by approximately 600, including both contractors and permanent positions.
Xstrata Coal stated that the restructuring is focused on scaling back high-cost production at some of its mines, adding that Australian production volumes are not expected to be materially impacted.
The company's approved growth projects, such as Ravensworth North, Ulan West and the expansion at Rolleston, are proceeding as planned, and remain on budget and on schedule. Feasibility studies into Wandoan Project continue, to enable an investment decision once relevant approvals have been completed and market conditions permit.